Structural gravity and trade agreements: does the measurement of domestic trade matter?

Rodolfo Campos, Jacopo Timini and Elena Vidal ()
Additional contact information
Elena Vidal: Banco de España

No 2117, Working Papers from Banco de España

Abstract: Economic theory suggests including domestic trade flows when estimating structural gravity models. The inclusion of domestic trade flows helps to identify parameters that cannot be estimated with international trade flows alone. The complication is that domestic trade flows can be measured empirically in different ways. Does it matter which one is used? We compare the three most common approaches to measuring domestic trade and show that they lead to very similar estimates of the parameters that are usually estimated within a structural gravity framework.

Keywords: international trade; structural gravity model; domestic trade; trade agreements (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 F62 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2021-04
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
https://www.bde.es/f/webbde/SES/Secciones/Publicac ... 21/Files/dt2117e.pdf First version, April 2021 (application/pdf)

Related works:
Journal Article: Structural gravity and trade agreements: Does the measurement of domestic trade matter? (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:2117

Access Statistics for this paper

More papers in Working Papers from Banco de España Contact information at EDIRC.
Bibliographic data for series maintained by Ángel Rodríguez. Electronic Dissemination of Information Unit. Research Department. Banco de España ().